Cairo – Mubasher: The Egyptian Exchange is forecasted to witness a correction in the mid-week trading session, but to maintain the positive outlook on the short run, analysts told Mubasher.
On Monday, the main index EGX30 was backed by its largest constituent CIB, rising sharply to 8,453 amid moderate volume, said market analyst at Mubasher International for Securities Shahd Raafat.
“The index has reached an overbought area on the short term and a correction is likely to take place soon, knowing that on the medium term the view is still bullish”, the analyst indicated.
Investors are advised to use the expected correction in “accumulation” as long as the main index holds above 7,993 points, the analyst added.
Golden Hand Brokerage’s technical analyst Mohamed Ismail expected EGX30 to target the mark of 8,500 and 8,900 on the short term, but a selling wave may rise by nearing the first targeted mark.
“Although the main index may drift lower to 8,250 and 8,000 points on this expected correction, the outlook remains positive as long as it is moving above the stop-loss level of 7,900”, Ismail concluded.
Yesterday, the benchmark gained 102.5 points, or 1.32%, to reach 8,453.53 points, registering the highest mark since 26 June 2015.
